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​Gold eases on firmer U.S. dollar, yields ahead of central bank meetings

 

·         Gold prices eased on Wednesday, retreating from the key $1,800 mark, as a stronger U.S. dollar and elevated bond yields dented bullion’s safe-haven appeal ahead of key central bank meetings.

 

·         Spot gold was down 0.2% at $1,788.66 per ounce, as of 0157 GMT. U.S. gold futures dropped 0.2% to $1,790.60.

 

·         The precious metal rallied to an over one-month peak late last week, but has retreated 1.2% from those levels.

 

·         Benchmark 10-year U.S. Treasury yields rose, increasing non-interest bearing gold’s opportunity cost.

 

·         The dollar also steadied close to a one-week high hit in the previous session, making gold less appealing for buyers holding other currencies.

 

·         Market participants now await Thursday’s Bank of Japan (BOJ) and European Central Bank (ECB) meetings.

 

·         The BOJ is set to maintain its massive stimulus program on Thursday and slash this year’s inflation forecast in a sign it has no intention to follow other central banks eyeing exits from crisis-mode policies.

 

·         Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion.

 

·         U.S. consumer confidence unexpectedly rose in October as concerns about high inflation were offset by better labor market prospects, suggesting economic growth was picking up after a turbulent third quarter.

 

·         China’s net gold imports via Hong Kong jumped nearly 60% in September to their highest level in five months, data from the Hong Kong Census and Statistics Department showed.

 

·         Indicative of sentiment, SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 979.81 tons on Tuesday from 978.07 tons on Monday.

 

·         Spot gold looks neutral in a range of $1,783-$1,795 per ounce, and an escape could suggest a direction

 

·         Gold Price Forecast: XAU/USD to retain a bullish bias above 50-DMA at $1780

Gold price extends previous losses. The 50-day moving average (DMA) at $1780 is set to test bulls’ commitments again as focus shifts to US data, central banks, FXStreet’s Dhwani Mehta reports.

“The bright metal is challenging the mildly bearish 100-DMA support at $1789, eyeing a retest of the horizontal 50-DMA cap at $1780. Further south, the upward-pointing 21-DMA at $1771 could come to the rescue of gold bulls.”

“If the buyers manage to defend the 50-DMA once again, then a rebound towards the 200-DMA at $1793 will be on the cards.”

“A daily closing above the 200-DMA is critical to revive the previous week’s uptrend. The six-week highs of $1814 will be once again in the buyers’ sights should $1800 hold the fort on the upside. The falling trendline resistance at $1811 could also offer strong resistance on the road to recovery.”

 

·         Spot silver fell 0.8% to $23.95 per ounce. Platinum eased 0.7% to $1,020.61 and palladium edged 0.3% lower to $2,005.51.

 

·         Long-term Treasury yields dip again as investors wait for Fed’s next move

 

·         Senate Democrats unveil corporate tax for Biden agenda

Leading Democratic senators unveiled legislation on Tuesday to impose a 15% minimum tax on the most profitable U.S. corporations, saying the levy would help finance President Joe Biden’s social policy and climate change plans.

 

·         Consumer confidence is a barometer of the delta variant, says Conference Board’s Odland

Steve Odland, Conference Board CEO and Jim Paulsen, Leuthold Group chief investment strategist, to discuss all things inflation, including where they believe inflation really is.

 

·         BoE hike would expose Treasury/Central Bank tangle: Mike Dolan

 

·         UK retailers warn of pre-Christmas price rises

 

·         German consumer sentiment rises for 2nd month despite inflation - GfK

The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, rose to 0.9 points for November, from a revised 0.4 points a month earlier.

 

·         China coal futures slump as govt announces 'clean up' of illegal storage site

China’s thermal coal futures slumped to their lowest in more than a month on Wednesday, marking a sixth consecutive day of declines, after the country’s state planner said it would conduct “clean up and rectification” work on coal storage sites.

 

·         TikTok tells U.S. lawmakers it does not give information to China's government

An executive at TikTok faced tough questions on Tuesday during the video-sharing app's first appearance at a U.S. congressional hearing, saying it does not give information to the Chinese government and has sought to safeguard U.S. data.

 

·         China needs more coal to avert a power crisis — but it’s not likely to turn to Australia for supply

China is facing its worst power crisis in years due to a coal shortage. While Australia has the coal Beijing needs, the world’s second-largest economy is unlikely to reverse an unofficial ban on Australian coal imports anytime soon, analysts told CNBC.

That’s despite recent media reports suggesting that China was releasing small quantities of Australian coal that was stuck at Chinese ports for months due to the ban.

 

·         Bulgaria hits record high daily coronavirus cases, hospitals stretched

 

 

Reference: Business Recorder, FXStreet, CNBC, Reuters